Snap Inc., the company behind Snapchat, has confidentially filed for its IPO (initial public offering), according to a Bloomberg report. The company is looking to raise upwards of $4 billion, which would value Snap Inc. at $25 billion to $35 billion. A separate report from Reuters claims the IPO is expected by March.
With its stature in the market bigger than ever, now’s the time for Snapchat to strike. The injection of capital could help it better compete against the likes of Facebook and Instagram, the latter of which is encroaching on the company’s territory in a big way.
Remember, Snapchat previously spurned an acquisition offer from Facebook a few years ago, which was said to be in the range of $3 billion. Facebook eventually imbued Instagram, another social app it previously acquired, with Snapchat-like powers; the Stories feature, which is just a few months old, is used by more than 150 million people on a daily basis, according to recent figures by Instagram.
A more mature Snapchat
Snapchat has matured significantly over the past few years and is no longer perceived as a place to exchange disappearing nudes. Instead, it’s an attractive platform for advertisers and a brilliant way to experience live events through its “Live” feature.
Recently, Snap Inc. unveiled the Snapchat Spectacles, a pair of sunglasses that allows users to post directly to their story. To see those in action, check out the video we made about the wearable.